The 1040 has held and each move towards this level has been rejected so far.  Today the Bulls didn’t get the follow thru they were looking for so dearly. SP500 sold of after filling the opening gap and ended just below the magical 1050 level ending up to 1048.8. There were nothing dramatic. The Bears pushed the prices lower all day with pretty low volume. Some short covering rallies occurred painting nice downward sloping channel on the tape. 8-min chart offered simple to trade day trade set ups.

The daily chart shows that  there is a big fight going on between Bulls and Bears. It won’t be easy for neither one. However, the path of least effort seems to be down for the short to intermediate term.  

Some short rallies should be expected. We are looking for any kind of strength that gets us up to the daily value zone or over to be shorted. However, we are still trading inside the box drawn during the last 4 months and thus current levels might offer tradable bounce and even some kind of mini rally. I’d like to emphasize that don’t bet your retirement on any hopes of strong long lasting rally any time soon. This is not the market you want to buy for long term, yet. This is a market that offers a lot of somehow tricky day trade opportunities and some swing trades. However, swing trades have been quite difficult to trade successfully lately. 

Keep your eyes on 1040 level and possible rejection to enter for a bounce play. Losing the key level would spread some real hesitation and panic into the markets.

Plan well, trade well and keep good trading records. We always have two goals for every trade. One is to make money and the other is to learn something. If you don’t accomplish neither of these, you are wasting your money and your life. We can’t get always the both but we should get at least one of them.

Peace,

Matias